Fixed-term Employment

Nearly 75 per cent of companies expect a rise in structured fixed-term employment as companies respond to the implementation of new labour codes, signalling a shift towards greater workforce formalisation, according to a report. The shift toward workforce formalisation is becoming increasingly evident, as an overwhelming 75 per cent of respondents anticipate greater adoption of structured fixed-term employment as a strategic response to the new labour codes, HR solutions provider Genius HRTech said in the report. This signals a decisive movement toward more formal, compliant, and documented employment arrangements, it added. In November 2025, the government consolidated and implemented 29 Central labour laws into four comprehensive codes - Wages, Industrial Relations, Social Security, and Occupational Safety, to simplify compliance, modernise regulations, and enhance worker welfare. The report by Genius HRTech is based on inputs from 1,459 companies during January 2026 across secto

Proposes to give legal backing to fixed-term employment

Fixed-term employment was defined as a workman who is employed on a contractual basis for a fixed period

The proposed framework became a starting point for the govt to bring back a law on 'fixed-term employment'

The fixed term employment was introduced in apparel manufacturing sector in Industrial Employment (Standing Order ) Act in October, 2016

In this backdrop, the proposal to introduce fixed-term employment (FTE) in all sectors is indeed a welcome step

The Union government has issued a draft notification to allow all businesses to offer fixed-term contracts to workers.This will enable industries to hire workers for short-term assignments and terminate their services once the projects are completed. The Labour and Employment Ministry brought back the proposal, junked earlier last year, after receiving demand from various quarters of the industry, especially food processing and leather sectors.The government had allowed fixed-term employment only for apparel manufacturing sector so far and had proposed to extend it to footwear, leather, and accessories sector workers in a decision taken by the Union Cabinet recently. The government had said that the move would help "attract large scale investments at global scale".Under fixed-term employment, workers are entitled to all statutory benefits available to a permanent worker in the same factory. The benefits include the same working hours, wages, and allowances. However, employers may not .

Legalising fixed-term employment is not enough

The Union Cabinet had approved a special package for the footwear, leather, and accessories sector on December 15